Bitfarms Stock, a Canadian Bitcoin mining company, increased by nearly 22% in response to the publication of Q2 earnings that beat expectations.
On August 8, Bitfarms stock experienced a robust trading session in response to its most recent quarterly earnings report, which revealed less than anticipated losses.
The Bitcoin miner reported a 7 cents per share loss in its Q2 results on Aug. 8, less than the 11 cents per share loss that Zacks Investment Research had initially predicted.
Ben Gagnon, the newly appointed CEO of Bitfarms, stated in a post on the social media platform X on August 8 that the miner is actively seeking new opportunities beyond Bitcoin mining and is continuing to expand.
“Our geographic expansion and ongoing fleet upgrades will continue to alter our operating profile significantly,” he stated.
We are thoroughly examining all of our MWs and evaluating several opportunities to expand beyond Bitcoin mining, including HPC/AI.
The total revenue of Bitfarm was $42 million, which was 16% lower than the first quarter and was below analyst expectations.
The miner stated in its earnings report that the decrease resulted from the Bitcoin halving on April 19, which reduced block rewards.
A programmed procedure in the BTC protocol, halving, is initiated after every 210,000 blocks are mined. The mining rewards have been reduced by 50%, with miners now receiving 3.125 BTC per extracted block, a decrease from the previous 6.25 BTC.
Operating losses of $23.6 million were also disclosed by Bitfarms, which included $46 million in accelerated depreciation on older miners.
Bitfarms Stock generates $37 million in Bitcoin in Q2
According to CoinGecko, the organization mined 614 BTC from its operations during the second quarter, equivalent to approximately $37 million at the current market price.
In the first quarter of 2024, the total financial cost of production, which encompasses all expenses associated with producing a single BTC, had increased from $27,900 to $47,300.
Bitfarms declared in April that it would allocate approximately $240 million to enhance its mining apparatus and recruit 88,000 additional miners.
The company reported a 34% month-over-month increase in Bitcoin revenues in July, generating 243 BTC ($14 million) compared to 189 BTC ($11 million) in June.
Its hashrate, which represents the processing and computing capacity, also increased significantly, rising from 6.5 EH/s to 11.1 EH/s.
Gagnon stated that the company’s new location in Sharon, PA, will enable them to increase the rate further in 2025.
“This site, in conjunction with our new megawatts in South America, will enable Bitfarms to surpass 35 EH/s in 2025, a 67% increase from our year-end target of 21 EH/s,” he stated.
“Over the next few years, we will continue executing our growth strategy with a sharp focus on U.S. expansion and diversification beyond Bitcoin mining.”
